With current mortgage interest rates being relatively low, it could be tempting to quickly secure a long-term mortgage at the current favourable rates. The Bank of England recently raised rates by 0.25% to 0.5% recently, which is the first-time rates have been raised since 2007 (Bank of England, viewed 04/12/2017). 

Deals that do not impose a penalty tend to be more expensive, so if more flexibility is important to you, prepare to spend more.  

Coventry & HSBC offer 5-year deals with rates of 1.85% and 1.99% respectively, however these have exit penalties of 5% in the first year. 

In order to avoid exit penalties, it could be advantageous to inquire with Coventry for their product with no early repayment charge, with the fixed rate option of 2.09% with a £499 fee and a variable rate of 1.64% with a fee of £999. These options are only suitable for those with a minimum of 50% equity however. 

For 10-year mortgages, the differences in fees in the whole of market are quite significant but beware of exit fees when selecting a mortgage. For example, exiting Santander's 2.69% mortgage in the last 27 months of the mortgage will mean that the fees that you will pay in order to exit will be larger than the interest you would have had to pay until the mortgage term expired (Sam Meadows, Telegraph, November 2017). 

Whichever mortgage option you choose expert advice could mean the difference between being locked in to an unattractive contract that will be painful to leave and a contract that suits your financial needs and goals as part of a customised financial plan.  

Talk to Westminster Wealth Management today, our expertise will enable you to navigate the mortgage landscape.

Your home may be repossessed if you do not keep up repayments on your mortgage. 

Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.